OPENING CALL

Stock futures were struggling for direction Thursday as sky-high artificial-intelligence valuations continue to prey on the minds of investors.

After this week's jitters over the AI trade, and Supreme Court skepticism about Trump's sweeping tariffs , the focus is back on the health of corporate America.

On top of a raft of earnings reports, investors are set to learn if Elon Musk's vast pay package won the approval of Tesla shareholders.

Meanwhile, the uncertainty created by the government shutdown could help to reinforce the case for the Federal Reserve to push the pause button on interest-rate cuts in December, First Abu Dhabi Bank said.

Across the Atlantic, the Bank of England is generally expected to hold rates, but some analysts project a 25bp cut.

Stocks to Watch

ArcelorMittal said it was hopeful state support for the industry would boost business next year. Shares jumped 5% in the Netherlands.

AppLovin posted stronger-than-projected quarterly results. Shares rallied premarket.

Duolingo skidded one-fifth premarket after its financial guidance disappointed.

Nissan posted a fifth straight quarterly loss, partly due to U.S. tariffs. Shares fell 1.7%.

Pfizer is preparing to resweeten its offer for Metsera. The weight-loss startup at the center of a bidding war that also involves Novo Nordisk.Metsera jumped 8% premarket. Novo Nordisk rallied 3% in Denmark.

Qualcomm posted better-than-projected earnings, but took a $5.7 billion non-cash charge linked to the One Big Beautiful Bill. Shares fell 3% before the bell.

Robinhood fell premarket, even though quarterly results topped forecasts.

Snap unveiled a deal to integrate Perplexity's AI-powered answer engine directly into Snapchat. Shares soared 17% premarket.

Tesla will reveal if shareholders approved a $1 trillion pay package for CEO Elon Musk. They are also voting on whether Tesla should invest in Musk's xAI startup.

Watch For:

Weekly Jobless Claims (no data during government shutdown), Governor Christopher J. Waller on Central Banking and the Future of Payments at the Bank of Canada 2025 Annual Economic Conference; earnings from Airbnb, ConocoPhillips, Expedia, Warner Bros. Discovery and Vistra

Today's Top Headlines/Must Reads:

- Trump's Tariffs Are a Massive Money Grab. That's Why They Are in Trouble.

- Builders Are Offering Mortgage Rate Discounts. Home Buyers Aren't Biting.

- Is the Drought in Life-Sciences IPOs Over? Two Startups Will Test Demand

MARKET WRAPS

Forex:

The dollar eased after reaching a five-month high against a basket of currencies in the previous session following better-than-expected U.S. data.

The readings fueled doubts over another U.S. interest-rate cut in December.

The euro rose and looks undervalued against the dollar after recent falls, ING said.

Sterling fell against the euro as investors turned cautious ahead of the Bank of England's interest-rate decision. Markets will be listening for any clues on the timing of the next rate cut amid speculation of a move in December.

Commerzbank said sterling is likely to weaken if the BOE leaves rates unchanged but signals a possible rate cut in December.

Bonds:

Treasury yields fell but the outlook pointed to higher yields, according to Pictet Asset Management.

The asset manager reduced its Treasury position to underweight from neutral , amid signs that the market is excessively optimistic about prospects for U.S. rate cuts.

Goldman Sachs said the Treasury's future increase of debt auction sizes were likely to tilt toward shorter-dated Treasurys.

Jefferies remains underweight in Treasurys .

Municipal bonds are currently generating more than twice their five-year average spread over similarly-rated corporate credit and offer attractive entry points for investors, Insight Investment said.

Energy:

Oil prices rose but remained pressured by signs of weaker demand.

The latest EIA report revealed that U.S. crude stockpiles rose by 5.2 million barrels last week, against expectations of a 100,000-barrel decline.

Meanwhile, Saudi Arabia significantly reduced the price of its crude for Asian buyers in December as OPEC+ continues to ramp up production, fueling concerns that demand growth in the region may be softening.

Metals:

Gold prices bounced back above $4,000 as investors assessed the impact of the latest U.S. labor data on the Federal Reserve's policy outlook.

"With the Fed's final 2025 meeting approaching and the U.S. government shutdown delaying key data, traders face heightened uncertainty over the economic outlook and the path of further easing," MUFG said.

Comex gold futures' downward pressure has eased, based on their latest positive price movements, RHB Retail Research said.

Copper

Copper was flat . ANZ said a stronger dollar was pressuring commodities as supply-side issues eased.

   TODAY'S TOP HEADLINES 

Diageo Lowers Guidance on Weakness in U.S. and China

Diageo cut its full-year guidance for sales and profit growth, citing weakness in the U.S. and China, as booze makers struggle to get customers to spend on high-end drinks.

The U.K. company behind Johnnie Walker whisky, Guinness beer and Baileys Irish Cream liqueur is looking to revive growth as it continues a search for a new boss. The company in July parted ways with Debra Crew, its chief executive of two years, and has yet to name a permanent replacement.

Shipping Giant Maersk Lifts Lower End of Earnings Guidance on Strong Demand

Danish shipping giant A.P. Moller-Maersk raised the lower end of its full-year earnings guidance as strong container demand and cost efficiencies counter falling freight rates.

Despite heightened market challenges from global trade tensions and macroeconomic uncertainty, Maersk's main shipping business posted a 7% increase in third-quarter freight volumes, buoyed by exports from East Asia, with China the main driver of volume growth supported by strong demand for technology goods.

Qualcomm Swings to Fourth-Quarter Loss On Tax Charge; Revenue Rises

Qualcomm swung to a loss in the fiscal fourth quarter following a large tax-related charge, but recorded a 10% increase in sales.

The semiconductor and software maker on Wednesday posted a loss of $3.12 billion, or $2.89 a share, in the quarter ended in September, compared with a profit of $2.92 billion, or $2.59 a share, a year earlier.

Pfizer Preps Improved Offer in Metsera Bidding War

Pfizer is preparing to sweeten its offer again for Metsera, the weight-loss drug startup at the center of a bidding war that also involves Novo Nordisk.

New York-based Pfizer is making plans to deliver a fresh bid Wednesday, according to people familiar with the matter, ahead of a deadline it has to respond to Novo Nordisk's latest proposal.

OpenAI walks back comments about government support for its AI spending

How OpenAI plans to pay for spending plans that dwarf its revenue is a big question these days. But after suggesting Wednesday that perhaps the government could get involved, the company is now walking back those comments.

CFO Sarah Friar said at the Wall Street Journal's Tech Live event on Wednesday that the ChatGPT creator was "looking for an ecosystem of banks, private equity, maybe even governmental" partners, as she mused about "the ways governments can come to bear."

Global Markets Stabilize After AI Stocks Reverse Losses

Markets started Thursday on a more stable footing after a rebound on Wall Street saw artificial-intelligence related shares recover ground.

The Nasdaq composite rose 0.6% after slumping in the prior session, the S&P 500 gained 0.4% and the Dow Jones Industrial Average ended up 0.5%. Still, U.S. stock futures edged slightly lower early in European business hours, Asian shares closed higher tracking the overnight action on Wall Street, while in Europe moves in major stock markets were muted.

U.S. to Reduce Flight Traffic by 10% at 40 Airports Because of Shutdown

The Federal Aviation Administration said it was ordering traffic to be reduced by 10% at 40 major airports while air-traffic controllers work without pay during the government shutdown.

Transportation Secretary Sean Duffy said the reduction, starting on Friday, would keep air travel safe as flight delays and cancellations pile up. The shutdown, which began Oct. 1, has exacerbated staffing issues in the ranks of federal transportation employees, leading to thousands of delayed or canceled flights, and long lines at security checkpoints.

Saudi Arabia Cuts December Oil Price for Asia in Sign of Caution

Saudi Arabia sharply reduced the price of its crude for Asian customers, a sign of caution from the world's largest oil exporter just days after OPEC+ decided to pause output increases for early next year.

State-owned oil giant Saudi Aramco set the official selling price for December loadings of its flagship Arab Light crude to Asia at $1 a barrel above the Oman/Dubai average, down from $2.20 in the previous month. The price is seen as a key indicator of the kingdom's outlook on regional demand.

German Industrial Production Rebounds Weakly Amid Tentative Hopes Over Outlook

Industrial production in Europe's largest economy rebounded less than expected in September, amid hopes that the outlook could be changing for the sector ahead of large-scale government investment.

Output rose 1.3% on month, Germany's statistics agency Destatis said Thursday, offsetting some of the 3.7% decline in August. Economists polled by The Wall Street Journal expected a larger 2.5% uptick.

UPS Plane That Crashed Was 34 Years Old-and Repaired in September

The United Parcel Service cargo plane that crashed Tuesday was 34 years old and needed a critical repair on its fuel tank in September.

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November 06, 2025 06:12 ET (11:12 GMT)

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